| | | Q3 2025 | % Change Q3 | YTD September | % | Change | YTD | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2024 | 30, 2025 | September | 30, | 2024 | | Revenue | | $634.5 | (8%) | $1,982.2 | | (12%) | | | Gross profit | | $184.4 | (13%) | $578.9 | | (17%) | | | Net income (loss) | $29.3 | | 319% | ($88.0) | | nm | | | Diluted income (loss) per share | | $0.76 | 322% | ($2.29) | | nm | | | Adjusted diluted EPS* | | $0.39 | (36%) | $1.14 | | (55%) | | | Adjusted EBITDA* | | $57.5 | (22%) | $18 ...

Core Insights - AMN Healthcare Services reported third quarter 2025 revenue of $634 million, an 8% decrease year-over-year, with adjusted EBITDA of $58 million, reflecting a 22% decline from the previous year [1][4][10] - The company achieved a net income of $29 million, significantly up from $7 million in Q3 2024, resulting in diluted earnings per share of $0.76 compared to $0.18 a year ago [1][4][10] - The company anticipates fourth quarter 2025 revenue to be between $715 million and $730 million, with expectations of a sequential increase in travel nursing demand [14][15] Financial Performance - Consolidated revenue for Q3 2025 was $634.5 million, down 8% from Q3 2024 and down 4% from Q2 2025 [1][4] - Gross profit for the quarter was $184.4 million, a 13% decrease year-over-year, with a gross margin of 29.1% [1][9] - Adjusted diluted EPS was $0.39, down 36% from $0.61 in Q3 2024 [1][10] Segment Performance - Nurse and Allied Solutions segment revenue was $361 million, a 9% decrease year-over-year, with travel nurse staffing revenue down 20% [5][36] - Physician and Leadership Solutions segment reported revenue of $178 million, down 1% year-over-year, while locum tenens revenue increased by 3% [6][36] - Technology and Workforce Solutions segment revenue was $95 million, a decrease of 12% year-over-year, primarily due to the sale of Smart Square scheduling software [8][36] Operational Highlights - Cash flow from operations was $23 million, and the company paid off its revolving line of credit with proceeds from the sale of Smart Square totaling $65 million [6][11] - The company refinanced its senior unsecured notes due in 2027 with new notes due in 2031, enhancing financial flexibility [12][13] - Staffing orders rebounded in Q3, with winter order volume higher than the previous year, indicating potential growth in travel nursing for Q4 [4][6] Guidance and Outlook - For Q4 2025, the company expects revenue to be 1-3% lower than the prior year but up 13-15% sequentially [15] - Labor disruption revenue is projected at approximately $100 million, compared to $62 million in the prior-year quarter [15] - The company anticipates a gross margin of 25.5% to 26.0% for Q4, reflecting a decrease due to lower margins on labor disruption revenue [14][15]

Core Points - AMN Healthcare Services, Inc. has scheduled a conference call to discuss its Q3 2025 financial results and Q4 2025 outlook on November 6, 2025, at 5:00 p.m. Eastern Time [1] - The earnings news release is expected to be issued after market close at approximately 4:15 p.m. Eastern Time on the same day [1] Access Information - A live webcast of the call will be available through a specific link and on AMN Healthcare's investor relations website [2] - Interested parties can participate live via telephone by registering at the conference call link, where a PIN will be provided for dial-in instructions [2] Replay Information - A replay of the webcast will be available on the Company's investor relations website following the conclusion of the call [3] Company Overview - AMN Healthcare is a leader in total talent solutions for healthcare, addressing workforce challenges to improve clinical outcomes and access to care [4] - In 2024, the Company's healthcare professionals reached nearly 15 million patients across more than 2,100 healthcare systems, including 87% of the top healthcare systems nationwide [4] - The Company offers a comprehensive network of quality healthcare professionals and a fully integrated suite of customizable workforce technologies [4] Stock Information - The Company's common stock is listed under the symbol "AMN" on the New York Stock Exchange [5] - For more information, the Company provides news releases, investor presentations, webcasts, SEC filings, and other material information on its website [5]

Summary of AMN Healthcare Services Conference Call Company Overview - **Company**: AMN Healthcare Services Inc. (NYSE: AMN) - **Industry**: Healthcare Staffing and Workforce Solutions - **Revenue**: Trailing twelve-month revenue is $2.8 billion - **Employees**: 2,900 corporate employees - **Business Segments**: - Nurse and Allied Solutions - Physician and Leadership Solutions - Technology and Workforce Solutions - **Core Focus**: Total talent solutions for healthcare providers across the U.S. [3][4] Key Points and Arguments Current State of the Healthcare Workforce - The company is experiencing a post-COVID normalization phase, focusing on reestablishing and building sustainable workforces that are high quality, affordable, and flexible [4] - There is a significant emphasis on technology enablement in both client solutions and internal operations [4] H1B Visa Impact - H1B visas represent less than 1% of AMN's consolidated revenue, with the majority of international nurses brought in on green cards [6][10] - Potential changes in immigration policies could affect the availability of clinical workers, particularly in rural markets, but AMN is well-positioned to navigate these changes [9][10] Debt Refinancing - AMN refinanced $750 million in debt, reducing the revolving facility to $450 million and issuing $400 million in new notes maturing in 2031 [11][12] - The refinancing aims to create a bulletproof balance sheet, allowing the company to focus on business operations and growth [12] Winter Seasonal Orders - The company is tracking winter orders positively, indicating stabilization in client demand and planning for high patient volumes [14][16] - Clients are increasingly focused on ensuring they have the right labor force in place ahead of the winter season [17] Competitive Environment - The healthcare staffing market has seen a shift from a $25 billion total addressable market (TAM) pre-COVID to mid to high $30 billion currently, with intense competition persisting [40] - AMN is focused on maintaining profitability and avoiding further gross margin compression [41] Market Signals and KPIs - Key indicators for market recovery include bill rate stabilization, increased utilization, and net strategic client growth [31][33] - AMN has seen an increase in the number of services sold to top strategic clients, indicating growth potential [33] International Business Recovery - Visa retrogression has previously impacted revenue, but AMN expects to see a return to positive year-over-year growth starting in Q1 next year as visa dates move forward [53][54] - The company anticipates recovering lost revenue and more due to favorable timing in visa processing [54] Future Outlook - AMN is focused on innovation and technology, particularly in AI enablement, to extend its leadership position in the market [56] - The company aims to fill more jobs and increase client growth over the next 12 to 18 months [56] Additional Important Insights - The company is adapting to changes in the MSP (Managed Service Provider) and vendor-neutral models, with a slight bias toward MSP in the current pipeline [42][44] - AMN has enhanced its VMS (Vendor Management System) platform, making it more competitive in the market [46][49] - The strategic value of supporting clients during strikes is recognized, with a significant pipeline of potential strike-related business [25][27] This summary encapsulates the key points discussed during the AMN Healthcare Services conference call, highlighting the company's current status, challenges, and future outlook in the healthcare staffing industry.

Core Points - AMN Healthcare Services, Inc. announced a private offering of $400 million senior unsecured notes due 2031 with an interest rate of 6.500% per annum [1] - The proceeds will be used to redeem $500 million of 4.625% senior unsecured notes due 2027 and to cover related fees and expenses [2] - A Conditional Notice of Redemption has been delivered for the 2027 Notes, with redemption scheduled for October 22, 2025, contingent on the successful completion of the 2031 Notes offering [3] - The 2031 Notes will be offered to qualified institutional buyers and non-U.S. persons, and will not be registered under the Securities Act [4] Company Overview - AMN Healthcare is a leader in total talent solutions for healthcare, addressing workforce challenges to improve clinical outcomes [6] - In 2024, AMN Healthcare professionals reached nearly 15 million patients across over 2,100 healthcare systems, including 87% of the top healthcare systems in the U.S. [6]

Core Viewpoint - AMN Healthcare Services, Inc. plans to offer $400 million in senior unsecured notes due 2031 to refinance existing debt and cover related expenses [1][2][3] Group 1: Offering Details - The company intends to use proceeds from the new offering, along with cash and borrowings, to redeem $500 million of its 4.625% senior unsecured notes due 2027 [2] - A Conditional Notice of Redemption will be sent to holders of the 2027 Notes, contingent on the successful completion of the 2031 Notes offering [3] - The 2031 Notes will be offered to qualified institutional buyers and non-U.S. persons, and will not be registered under the Securities Act [4] Group 2: Company Overview - AMN Healthcare is a leader in total talent solutions for healthcare, addressing workforce challenges to improve clinical outcomes [6] - In 2024, AMN Healthcare professionals served nearly 15 million patients across over 2,100 healthcare systems, including 87% of the top healthcare systems in the U.S. [6]

Core Insights - AMN Healthcare Services, Inc. reported adjusted earnings per share (EPS) of 30 cents for Q2 2025, a decline of 69.4% year over year, but exceeded the Zacks Consensus Estimate by 76.5% [1] - The company’s revenues for Q2 2025 were $658.2 million, down 11.1% year over year, yet also surpassed the Zacks Consensus Estimate by 0.9% [2] - AMN Healthcare's gross profit fell 14.5% year over year to $196.4 million, with a gross margin of 29.8% [7] Revenue Breakdown - The Nurse and Allied Solutions segment generated revenues of $381.9 million, down 13.7% year over year, with travel nurse staffing revenues declining by 25% [4] - The Physician and Leadership Solutions segment reported revenues of $174.5 million, a decrease of 6.2% year over year, with interim leadership revenues down 25% [5] - The Technology and Workforce Solutions segment's revenues totaled $101.8 million, down 9.3% year over year, with vendor management systems revenue declining by 31% [6] Margin and Financial Position - Selling, general & administrative expenses increased by 3.7% year over year to $154.6 million, while adjusted operating profit fell by 48.2% to $41.8 million [7] - AMN Healthcare ended Q2 2025 with cash and cash equivalents of $41.5 million, down from $55.8 million at the end of Q1 2025, and total debt decreased to $920 million from $1 billion [8] Future Guidance - For Q3 2025, AMN Healthcare expects revenues in the range of $610 million to $625 million, reflecting a decline of 9-11% compared to the prior year [11] - The company anticipates a decline of 11-14% in revenues for the Nurse and Allied Solutions segment and 12-14% for the Technology and Workforce Solutions segment in Q3 [12] Overall Assessment - The overall performance of AMN Healthcare in Q2 2025 was disappointing, with declines across all segments and contracting margins [13] - Despite the challenges, there was an encouraging uptick in Language interpretation services revenues and positive customer adoption of AMN Passport [14] - The recent sale of the Smart Square nurse scheduling software and the partnership with symplr is seen as a promising development for the company [15]

Group 1: Earnings Performance - AMN Healthcare Services reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, but down from $0.98 per share a year ago, representing an earnings surprise of +76.47% [1] - The company has surpassed consensus EPS estimates for the last four quarters [2] - AMN Healthcare's revenues for the quarter ended June 2025 were $658.18 million, surpassing the Zacks Consensus Estimate by 0.87%, but down from $740.68 million year-over-year [2] Group 2: Stock Performance and Market Comparison - AMN Healthcare shares have declined approximately 28% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $639.01 million, and for the current fiscal year, it is $1.04 on revenues of $2.63 billion [7] - The outlook for the Medical Services industry, where AMN operates, is currently in the top 40% of Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and notes, highlighting a significant net loss and asset decrease due to impairment losses [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and stockholders' equity as of June 30, 2025, compared to December 31, 2024, largely influenced by a reduction in goodwill and intangible assets Condensed Consolidated Balance Sheet Highlights | Item | June 30, 2025 ($ thousand) | December 31, 2024 ($ thousand) | | :-------------------------------- | :------------------- | :--------------------- | | Cash and cash equivalents | 41,503 | 10,649 | | Total current assets | 571,351 | 594,915 | | Goodwill | 755,809 | 897,456 | | Intangible assets, net | 322,518 | 381,364 | | Total assets | 2,212,221 | 2,415,727 | | Total current liabilities | 573,643 | 545,785 | | Total liabilities | 1,604,625 | 1,709,107 | | Total stockholders' equity | 607,596 | 706,620 | - Total assets decreased by **$203.5 million**, and total stockholders' equity decreased by **$99.0 million** from December 31, 2024, to June 30, 2025[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The company reported a significant net loss for both the three and six months ended June 30, 2025, a reversal from net income in the prior year, primarily driven by substantial goodwill and long-lived asset impairment losses Condensed Consolidated Statements of Comprehensive Income (Loss) Highlights | Item | Three Months Ended June 30, 2025 ($ thousand) | Three Months Ended June 30, 2024 ($ thousand) | Six Months Ended June 30, 2025 ($ thousand) | Six Months Ended June 30, 2024 ($ thousand) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Revenue | 658,175 | 740,685 | 1,347,708 | 1,561,563 | | Gross profit | 196,399 | 229,827 | 394,519 | 487,333 | | Goodwill impairment loss | 109,515 | — | 109,515 | — | | Long-lived assets impairment loss | 18,262 | — | 18,262 | — | | Net income (loss) | (116,202) | 16,237 | (117,294) | 33,565 | | Basic EPS | (3.02) | 0.43 | (3.06) | 0.88 | | Diluted EPS | (3.02) | 0.42 | (3.06) | 0.88 | - Revenue decreased by **11.1%** for the three months and **13.7%** for the six months ended June 30, 2025, compared to the same periods in 2024[17](index=17&type=chunk) - The company incurred a goodwill impairment loss of **$109.5 million** and a long-lived assets impairment loss of **$18.3 million** in the first half of 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased from $706.6 million at December 31, 2024, to $607.6 million at June 30, 2025, primarily due to the net loss incurred during the period Condensed Consolidated Statements of Stockholders' Equity Highlights | Item | December 31, 2024 ($ thousand) | June 30, 2025 ($ thousand) | | :-------------------------------- | :--------------------- | :------------------- | | Total stockholders' equity | 706,620 | 607,596 | | Retained earnings | 1,304,696 | 1,187,402 | | Accumulated other comprehensive income (loss) | (11) | 195 | - Comprehensive income (loss) for the six months ended June 30, 2025, was a loss of **$(117.1) million**, compared to an income of **$33.8 million** for the same period in 2024[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased year-over-year, while net cash used in investing and financing activities increased, resulting in a net decrease in cash, cash equivalents, and restricted cash for the six months ended June 30, 2025 Condensed Consolidated Statements of Cash Flows Highlights | Cash Flow Activity | Six Months Ended June 30, 2025 ($ thousand) | Six Months Ended June 30, 2024 ($ thousand) | | :------------------------------------------ | :---------------------------------- | :---------------------------------- | | Net cash provided by operating activities | 171,219 | 180,901 | | Net cash used in investing activities | (46,637) | (43,731) | | Net cash used in financing activities | (141,437) | (119,081) | | Net increase (decrease) in cash, cash equivalents and restricted cash | (16,855) | 18,089 | | Cash, cash equivalents and restricted cash at end of period | 72,450 | 126,362 | - The decrease in net cash from operating activities was primarily due to a smaller reduction in accounts receivable and subcontractor receivables compared to the prior year[125](index=125&type=chunk) - Net cash used in investing activities increased due to a net purchase of investments of **$26.9 million** in 2025, compared to net proceeds of **$4.5 million** in 2024[128](index=128&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of the accounting policies, significant estimates, and specific financial statement line items, including segment information, goodwill and intangible asset impairments, fair value measurements, and commitments [1. BASIS OF PRESENTATION](index=9&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note outlines the basis for preparing the unaudited condensed consolidated financial statements, emphasizing U.S. GAAP compliance, the use of estimates, and details on cash, cash equivalents, restricted cash, and accounts receivable policies. It also mentions the adoption of ASU 2023-07 on segment reporting - The company adopted ASU 2023-07, 'Segment Reporting,' for the year ended December 31, 2024, expanding disclosure requirements for reportable segments[28](index=28&type=chunk) Cash, Cash Equivalents and Restricted Cash Reconciliation | Item | June 30, 2025 ($ thousand) | December 31, 2024 ($ thousand) | | :------------------------------------------- | :------------------- | :--------------------- | | Cash and cash equivalents | 41,503 | 10,649 | | Restricted cash and cash equivalents (included in other current assets) | 22,146 | 14,984 | | Restricted cash, cash equivalents and investments | 44,141 | 71,840 | | Total cash, cash equivalents and restricted cash and investments | 107,790 | 97,473 | | Less restricted investments | (35,340) | (8,168) | | Total cash, cash equivalents and restricted cash | 72,450 | 89,305 | Allowance for Credit Losses for Accounts Receivable Activity | Item | 2025 ($ thousand) | 2024 ($ thousand) | | :------------------------------------ | :-------- | :-------- | | Balance as of January 1, | 32,421 | 32,233 | | Provision for expected credit losses | 4,655 | 6,195 | | Amounts written off charged against the allowance | (13,073) | (5,021) | | Allowance for credit losses in assets held for sale | (91) | — | | Balance as of June 30, | 23,912 | 33,407 | [2. HELD FOR SALE](index=11&type=section&id=2.%20HELD%20FOR%20SALE) The company classified its Smart Square healthcare scheduling software as held for sale as of June 30, 2025, and completed its sale on July 1, 2025, for $65.3 million cash and a $10.0 million note. This disposal is not considered a discontinued operation - The sale of Smart Square healthcare scheduling software was completed on July 1, 2025, for **$65.3 million** in cash and a **$10.0 million** note[37](index=37&type=chunk) Assets and Liabilities Classified as Held for Sale (June 30, 2025) | Item | Amount ($ thousand) | | :-------------------------- | :------------ | | Accounts receivable, net | 3,643 | | Fixed assets, net | 5,250 | | Intangible assets, net | 1,549 | | Goodwill | 32,132 | | Other assets | 97 | | **Total assets held for sale** | **42,671** | | Accounts payable and accrued expenses | 92 | | Deferred revenue | 6,540 | | **Total liabilities held for sale** | **6,632** | [3. REVENUE RECOGNITION](index=12&type=section&id=3.%20REVENUE%20RECOGNITION) Revenue is primarily generated from temporary staffing, permanent placement of healthcare professionals, and technology-enabled services. Recognition occurs when control of services is transferred, either on a gross basis (as principal) for its own network and language services, or a net basis (as agent) for subcontractor-based MSP and VMS arrangements - Revenue sources include temporary staffing, permanent placement of healthcare professionals, technology-enabled services (language interpretation, vendor management systems), and talent planning[41](index=41&type=chunk) - Revenue is recorded on a gross basis when using its own network of healthcare professionals and for language services, and on a net basis when acting as an agent for subcontractors under MSP or VMS arrangements[42](index=42&type=chunk) [4. NET INCOME (LOSS) PER COMMON SHARE](index=13&type=section&id=4.%20NET%20INCOME%20%28LOSS%29%20PER%20COMMON%20SHARE) The company reported a basic and diluted net loss per common share for both the three and six months ended June 30, 2025, a significant decline from positive earnings per share in the prior year Net Income (Loss) Per Common Share | Period | 2025 Basic EPS | 2024 Basic EPS | 2025 Diluted EPS | 2024 Diluted EPS | | :-------------------------- | :------------- | :------------- | :--------------- | :--------------- | | Three Months Ended June 30, | $(3.02) | $0.43 | $(3.02) | $0.42 | | Six Months Ended June 30, | $(3.06) | $0.88 | $(3.06) | $0.88 | - Anti-dilutive potential common shares excluded from diluted weighted average common shares outstanding were **157 thousand** for the three months and **110 thousand** for the six months ended June 30, 2025[47](index=47&type=chunk) [5. SEGMENT INFORMATION](index=13&type=section&id=5.%20SEGMENT%20INFORMATION) The company operates through three reportable segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. All segments experienced revenue declines for both the three and six months ended June 30, 2025, compared to the prior year, with varying impacts on gross profit margins - The company's three reportable segments are Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions[48](index=48&type=chunk) Revenue by Reportable Segment (Three Months Ended June 30) | Segment | 2025 ($ thousand) | 2024 ($ thousand) | Change ($ thousand) | Change (%) | | :-------------------------- | :-------- | :-------- | :---------- | :--------- | | Nurse and Allied Solutions | 381,871 | 442,399 | (60,528) | (13.7%) | | Physician and Leadership Solutions | 174,531 | 186,065 | (11,534) | (6.2%) | | Technology and Workforce Solutions | 101,773 | 112,221 | (10,448) | (9.3%) | | **Total Revenue** | **658,175** | **740,685** | **(82,510)** | **(11.1%)** | Revenue by Reportable Segment (Six Months Ended June 30) | Segment | 2025 ($ thousand) | 2024 ($ thousand) | Change ($ thousand) | Change (%) | | :-------------------------- | :-------- | :-------- | :---------- | :--------- | | Nurse and Allied Solutions | 795,132 | 961,696 | (166,564) | (17.3%) | | Physician and Leadership Solutions | 348,596 | 374,862 | (26,266) | (7.0%) | | Technology and Workforce Solutions | 203,980 | 225,005 | (21,025) | (9.3%) | | **Total Revenue** | **1,347,708** | **1,561,563** | **(213,855)** | **(13.7%)** | Gross Margin by Reportable Segment (Three Months Ended June 30) | Segment | 2025 Gross Margin | 2024 Gross Margin | | :-------------------------- | :---------------- | :---------------- | | Nurse and Allied Solutions | 23.9% | 23.8% | | Physician and Leadership Solutions | 28.2% | 30.5% | | Technology and Workforce Solutions | 55.1% | 60.2% | [6. GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS](index=18&type=section&id=6.%20GOODWILL%20AND%20IDENTIFIABLE%20INTANGIBLE%20ASSETS) The company recognized a $109.5 million goodwill impairment loss in the Physician and Leadership Solutions segment and an $18.3 million impairment loss on customer relationships intangible assets in the Nurse and Allied Solutions segment during the second quarter of 2025, driven by declines in forecasted revenue and increased costs - A goodwill impairment loss of **$109.5 million** was recognized for the Physician and Leadership Solutions segment due to lower-than-expected volume, gross margin pressures, and declining demand[61](index=61&type=chunk)[62](index=62&type=chunk) - An impairment loss of **$18.3 million** was recognized on customer relationships intangible assets within the Nurse and Allied Solutions segment[64](index=64&type=chunk) Goodwill Carrying Value by Reportable Segment (June 30, 2025) | Segment | Balance, January 1, 2025 ($ thousand) | Goodwill Impairment Loss ($ thousand) | Goodwill in Assets Held for Sale ($ thousand) | Balance, June 30, 2025 ($ thousand) | | :-------------------------------- | :---------------------------- | :---------------------------- | :---------------------------------- | :---------------------------- | | Nurse and Allied Solutions | 259,137 | — | — | 259,137 | | Physician and Leadership Solutions | 237,760 | (109,515) | — | 128,245 | | Technology and Workforce Solutions | 400,559 | — | (32,132) | 368,427 | | **Total** | **897,456** | **(109,515)** | **(32,132)** | **755,809** | [7. FAIR VALUE MEASUREMENT](index=19&type=section&id=7.%20FAIR%20VALUE%20MEASUREMENT) This note details the company's fair value measurement techniques for recurring and non-recurring assets and liabilities, utilizing Level 1 and Level 2 inputs for financial instruments and Level 3 inputs for impairment testing of intangible assets and goodwill. It also provides the fair value of its senior notes - The company uses Level 1 inputs for money market funds and deferred compensation, and Level 2 inputs for commercial paper and corporate bonds in recurring fair value measurements[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) Unobservable Inputs for Revenue Cycle Solutions Asset Group Fair Value Measurement (June 30, 2025) | Input | Range | Average | | :------------------------ | :------------ | :------ | | Revenue growth rates | (2.1)% - 6.1% | 3.3% | | Long-term growth rate | 3.5% | N/A | | Weighted-average cost of capital | 14.0% | N/A | Fair Value of Senior Notes (June 30, 2025) | Notes | Carrying Amount ($ thousand) | Estimated Fair Value ($ thousand) | | :---------- | :------------------- | :------------------------ | | 2027 Notes | 500,000 | 486,250 | | 2029 Notes | 350,000 | 322,875 | [8. INCOME TAXES](index=21&type=section&id=8.%20INCOME%20TAXES) The company is subject to taxation in various jurisdictions and is assessing the impact of the recently enacted One Big Beautiful Bill Act (OBBBA) on its consolidated financial statements - The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, and the company is currently assessing its impact on its consolidated financial statements[80](index=80&type=chunk) - The company's effective income tax rate for the six months ended June 30, 2025, was **13%**, down from **26%** in the prior year, primarily due to a significant decline in income before income taxes and a goodwill impairment loss[120](index=120&type=chunk) [9. COMMITMENTS AND CONTINGENCIES](index=21&type=section&id=9.%20COMMITMENTS%20AND%20CONTINGENCIES) The company is involved in various lawsuits, claims, and investigations in the ordinary course of business, including professional liability and class action lawsuits. Liabilities are accrued when an adverse outcome is probable and estimable - The company is involved in various legal proceedings, claims, and investigations related to professional liability, tax, compensation, contract, and employment-related matters[81](index=81&type=chunk) - Accruals for loss contingencies are made when an adverse outcome is probable and the amount can be reasonably estimated, with significant matters including class and representative actions for wage and hour claims[81](index=81&type=chunk) [10. BALANCE SHEET DETAILS](index=22&type=section&id=10.%20BALANCE%20SHEET%20DETAILS) This note provides detailed breakdowns of various balance sheet accounts, including other current assets, fixed assets, other assets, accounts payable and accrued expenses, accrued compensation and benefits, and other current and long-term liabilities Other Current Assets (June 30, 2025) | Item | Amount ($ thousand) | | :-------------------------- | :------------ | | Restricted cash and cash equivalents | 22,146 | | Income taxes receivable | 10,592 | | Subcontractor deposits | 12,930 | | Other | 18,698 | | **Total Other current assets** | **64,366** | Fixed Assets, Net (June 30, 2025) | Item | Amount ($ thousand) | | :-------------------------- | :------------ | | Furniture and equipment | 95,254 | | Software | 427,187 | | Leasehold improvements | 16,058 | | Accumulated depreciation | (380,284) | | **Fixed assets, net** | **158,215** | Accounts Payable and Accrued Expenses (June 30, 2025) | Item | Amount ($ thousand) | | :-------------------------- | :------------ | | Trade accounts payable | 34,740 | | Subcontractor payable | 64,716 | | Accrued expenses | 53,420 | | Loss contingencies | 7,213 | | Professional liability reserve | 9,075 | | Other | 6,459 | | **Total** | **175,623** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses AMN Healthcare's business overview, market trends, critical accounting policies, and financial results, highlighting revenue declines, impairment losses, and liquidity [Overview of Our Business](index=23&type=section&id=Overview%20of%20Our%20Business) AMN Healthcare provides technology-enabled healthcare workforce solutions and staffing services across three reportable segments: nurse and allied solutions, physician and leadership solutions, and technology and workforce solutions. The company reported consolidated revenue declines for both the three and six months ended June 30, 2025 - AMN Healthcare provides technology-enabled healthcare workforce solutions and staffing services to healthcare organizations[84](index=84&type=chunk) - The company operates through three reportable segments: nurse and allied solutions, physician and leadership solutions, and technology and workforce solutions[85](index=85&type=chunk) Consolidated Revenue Overview | Period | 2025 ($ thousand) | 2024 ($ thousand) | | :-------------------------- | :-------- | :-------- | | Three Months Ended June 30, | 658,200 | 740,700 | | Six Months Ended June 30, | 1,347,700 | 1,561,600 | [Operating Metrics](index=23&type=section&id=Operating%20Metrics) The company monitors key operating metrics such as average travelers on assignment, bill rates, billable hours, days filled, revenue per day filled, and minutes for language services to evaluate performance and understand operational trends - Key operating metrics include average travelers on assignment, bill rates, billable hours (nurse and allied solutions), days filled, revenue per day filled (physician and leadership solutions), and minutes (language services)[96](index=96&type=chunk) [Recent Trends](index=24&type=section&id=Recent%20Trends) Post-COVID-19, healthcare organizations are shifting focus to permanent staff hiring and cost management, leading to decreased demand in travel nurse staffing and slowing growth in language services due to increased competition and pricing pressure. Visa retrogression also impacted international nurse staffing - Healthcare organizations are focusing on hiring permanent staff, implementing cost management strategies, and exploring alternative staffing models to decrease reliance on contingent labor[91](index=91&type=chunk) - Demand in the travel nurse business decreased in Q2 2025 due to seasonal fluctuations and lower overall market demand, with open orders dropping below prior year levels[91](index=91&type=chunk) - Growth in the language services business has slowed due to reduced minute growth and lower pricing, a result of increased market competition[94](index=94&type=chunk) [Critical Accounting Policies and Estimates](index=24&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) There have been no material changes to the company's critical accounting policies and estimates compared to its 2024 Annual Report. Management continues to evaluate estimates related to intangible assets, asset impairments, self-insurance, compensation, accounts receivable, contingencies, and income taxes - No material changes have occurred in critical accounting policies and estimates compared to the 2024 Annual Report[95](index=95&type=chunk) - Key estimates include those related to intangible assets, asset impairments, accruals for self-insurance, compensation, accounts receivable, contingencies and litigation, contingent consideration, and income taxes[95](index=95&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) The company experienced significant declines in revenue and gross profit across all segments for both the three and six months ended June 30, 2025, compared to the prior year. This was exacerbated by substantial goodwill and long-lived asset impairment losses, leading to a net loss [Overall Performance](index=25&type=section&id=Overall%20Performance) The company's overall financial performance shifted from net income to a net loss for both the three and six months ended June 30, 2025, with net income (loss) as a percentage of revenue significantly declining Net Income (Loss) as a Percentage of Revenue | Period | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30, | (17.7)% | 2.2% | | Six Months Ended June 30, | (8.7)% | 2.1% | [Comparison of Results for the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024](index=25&type=section&id=Comparison%20of%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202024) Total revenue decreased 11% to $658.2 million, primarily due to a 14% decline in the nurse and allied solutions segment. Gross profit decreased 15%, and significant goodwill and long-lived asset impairment losses were recognized, leading to a net loss of $(116.2) million - Total revenue decreased **11%** to **$658.2 million**, with the nurse and allied solutions segment experiencing the greatest decline[99](index=99&type=chunk) - Nurse and allied solutions segment revenue decreased **14%** (**$60.5 million**) due to a **16%** decrease in average travelers on assignment, a **2%** decrease in average bill rate, and a **1%** decrease in average billable hours, partially offset by a **$15.0 million** increase in labor disruption revenue[99](index=99&type=chunk) - Physician and leadership solutions segment revenue decreased **6%** (**$11.6 million**) due to lower demand across all businesses, including a **9%** decrease in locum tenens days filled, a **25%** decline in interim leadership, and a **29%** decline in physician permanent placement and executive search[100](index=100&type=chunk) - Technology and workforce solutions segment revenue decreased **9%** (**$10.4 million**) primarily due to declines in VMS (**31%**) and outsourced solutions (**46%**) businesses[101](index=101&type=chunk) - Gross profit decreased **15%** to **$196.4 million**, with consolidated gross margin declining to **29.8%** from **31.0%** in the prior year[104](index=104&type=chunk) - A goodwill impairment loss of **$109.5 million** and a long-lived assets impairment loss of **$18.3 million** were recognized[106](index=106&type=chunk)[107](index=107&type=chunk) [Comparison of Results for the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024](index=27&type=section&id=Comparison%20of%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202024) Total revenue decreased 14% to $1,347.7 million, primarily driven by a 17% decline in the nurse and allied solutions segment. Gross profit decreased 19%, and significant impairment losses contributed to a net loss of $(117.3) million - Total revenue decreased **14%** to **$1,347.7 million**, with the nurse and allied solutions segment experiencing the greatest decline[110](index=110&type=chunk) - Nurse and allied solutions segment revenue decreased **17%** (**$166.6 million**) due to a **19%** decrease in average travelers on assignment, a **3%** decrease in average bill rate, and a **1%** decrease in average billable hours, partially offset by a **$54.0 million** increase in labor disruption revenue[111](index=111&type=chunk) - Physician and leadership solutions segment revenue decreased **7%** (**$26.3 million**) due to lower demand, including a **2%** decline in locum tenens revenue (**9%** decrease in days filled, partially offset by **8%** increase in revenue per day filled), a **23%** decline in interim leadership, and a **29%** decline in physician permanent placement and executive search[112](index=112&type=chunk) - Technology and workforce solutions segment revenue decreased **9%** (**$21.0 million**) due to declines in VMS (**32%**) and outsourced solutions (**51%**), partially offset by a **3%** growth in language services (**7%** increase in minutes)[113](index=113&type=chunk) - Gross profit decreased **19%** to **$394.5 million**, with consolidated gross margin declining to **29.3%** from **31.2%** in the prior year[116](index=116&type=chunk) - A goodwill impairment loss of **$109.5 million** and a long-lived assets impairment loss of **$18.3 million** were recognized[118](index=118&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash provided by operating activities decreased, while net cash used in investing and financing activities increased for the six months ended June 30, 2025. The company maintains a $750.0 million secured revolving credit facility and believes its current liquidity and available borrowings are sufficient to fund operations and future acquisitions Cash Flow Summary (Six Months Ended June 30) | Item | 2025 ($ thousand) | 2024 ($ thousand) | | :-------------------------------------------------- | :-------- | :-------- | | Net cash provided by operating activities | 171,219 | 180,901 | | Net cash used in investing activities | (46,637) | (43,731) | | Net cash used in financing activities | (141,437) | (119,081) | | Net increase (decrease) in cash, cash equivalents and restricted cash | (16,855) | 18,089 | - As of June 30, 2025, **$70.0 million** was drawn with **$659.6 million** available under the **$750.0 million** secured revolving credit facility[123](index=123&type=chunk) - The company had **$500.0 million** in 2027 Notes and **$350.0 million** in 2029 Notes outstanding as of June 30, 2025[123](index=123&type=chunk) - Days Sales Outstanding (DSO) was **54 days** as of June 30, 2025, an improvement from **63 days** as of June 30, 2024[127](index=127&type=chunk) [Recent Accounting Pronouncements](index=31&type=section&id=Recent%20Accounting%20Pronouncements) The company is evaluating the impact of two new FASB ASUs: ASU 2023-09 on Income Tax Disclosures (effective for fiscal years beginning after December 15, 2024) and ASU 2024-03 on Expense Disaggregation Disclosures (effective for fiscal years beginning after December 15, 2026) - ASU 2023-09, 'Income Taxes (Topic 740): Improvements to Income Tax Disclosures,' is effective for fiscal years beginning after December 15, 2024[132](index=132&type=chunk) - ASU 2024-03, 'Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,' is effective for fiscal years beginning after December 15, 2026[133](index=133&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure is interest rate risk associated with its variable interest debt and investment portfolio. A 100 basis point change in interest rates is not expected to materially affect its financial statements or investment portfolio. Foreign currency risk is considered immaterial - The primary market risk exposure is interest rate risk associated with variable interest debt instruments and the investment portfolio[136](index=136&type=chunk) - A **100 basis point** increase in interest rates would not result in a material effect on the unaudited condensed consolidated financial statements or the fair value of the investment portfolio[136](index=136&type=chunk) - Foreign currency risk is considered immaterial as substantially all revenue is generated in the United States[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO/COO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025. No material changes in internal control over financial reporting occurred during the quarter - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[139](index=139&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[140](index=140&type=chunk) [PART II - OTHER INFORMATION](index=35&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity security sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note (9), 'Commitments and Contingencies,' in the financial statements - Information on legal proceedings is incorporated by reference from Note (9), 'Commitments and Contingencies,' in the accompanying financial statements[142](index=142&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the 2024 Annual Report. Various factors, including economic downturns, market conditions, regulatory compliance, and asset impairments, could materially affect the company's business and financial results - No material changes to the risk factors disclosed in Part I, Item 1A of the 2024 Annual Report[143](index=143&type=chunk) - Key risk factors include client efficiency, economic downturns, government policies, market consolidation, legal proceedings, regulatory compliance, immigration laws, recruitment/retention, technology disruptions, cybersecurity, AI, acquisitions, brand reputation, goodwill/intangible asset impairment, indebtedness, and insurance accruals[135](index=135&type=chunk)[138](index=138&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a share repurchase program with $226.7 million remaining authorization as of June 30, 2025. No shares of common stock were repurchased during the six months ended June 30, 2025 - The company's share repurchase program has a total authorization of **$1,350.0 million**, with **$226.7 million** remaining as of June 30, 2025[144](index=144&type=chunk) - No shares of common stock were repurchased during the six months ended June 30, 2025[145](index=145&type=chunk) [Item 3. Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities [Item 4. Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by directors or officers during the three months ended June 30, 2025[148](index=148&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including various certifications and XBRL documents - Exhibits include certifications (31.1, 31.2, 32.1, 32.2) and XBRL Instance, Schema, Calculation, Definition, Label, and Presentation Documents[149](index=149&type=chunk) [Signatures](index=37&type=section&id=Signatures) The report is signed by Caroline S. Grace, President and Chief Executive Officer, and Brian M. Scott, Chief Financial Officer and Chief Operating Officer, on August 7, 2025 - The report was signed by Caroline S. Grace (President and CEO) and Brian M. Scott (CFO and COO) on August 7, 2025[152](index=152&type=chunk)

Financial Data and Key Metrics Changes - Second quarter revenue was $658 million, down 11% year over year and down 5% sequentially, but at the upper end of guidance [19][7] - Adjusted EBITDA for the second quarter was $58 million, down 38% year over year and 9% sequentially, with an adjusted EBITDA margin of 8.9% [25][26] - Net loss for the second quarter was $116 million, compared to net income of $16 million in the prior year period [27] - Days sales outstanding decreased to 54 days, which is nine days lower than a year ago [28] Business Line Data and Key Metrics Changes - Nurse and Allied revenue was $382 million, down 14% year over year, primarily due to lower volume [20] - Physician and Leadership Solutions segment revenue was $175 million, down 6% year over year [22] - Technology and Workforce Solutions revenue was $102 million, down 9% year over year [24] - Language services revenue was $76 million, up 1% year over year [24] Market Data and Key Metrics Changes - Academic medical centers accounted for about 20% of consolidated revenue year to date, with spending reductions due to federal funding cuts [8] - Travel nurse orders in June were 15% lower than in March, indicating client uncertainty [8] - Locum Tenens demand was 5% higher than Q2, showing signs of recovery [13] Company Strategy and Development Direction - The company aims to diversify revenues and enhance technology-enabled services, with AMN Passport achieving over 300,000 registered users [15] - Focus on operational efficiency and cost management while driving volume growth [17] - The company is positioned to benefit from market share gains in an environment where competitors are struggling [14][92] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainty regarding government policy has led to cautious client behavior, impacting staffing orders [7] - There are signs of demand stabilization in July, with expectations for improved metrics in the second half of the year [10][38] - The company anticipates double-digit growth in international nurse staffing by 2026, driven by visa retrogression improvements [96][97] Other Important Information - The company recorded a non-cash goodwill impairment charge of $110 million related to the Physician and Leadership Solutions segment [26] - The sale of SmartSquare for $75 million is expected to reduce annualized revenue by approximately $17 million starting in Q3 [25] Q&A Session Summary Question: Insights on clients' contingent labor needs - Management observed that clients are normalizing their utilization of labor, with a focus on permanent hiring and building flexibility [39][40] Question: Drivers behind gross margin improvements in Nurse and Allied - Management indicated that underlying spreads in Nurse and Allied have stabilized, contributing to improved gross margins [43][44] Question: Timing for potential recovery in demand - Management expects to see stabilization and potential growth in demand as the year progresses, particularly in Q4 [56][57] Question: Competitive pricing environment - Management noted that pricing has remained stable, with no significant changes despite competitive pressures [108][109] Question: Future growth expectations for language services - Management anticipates modest growth in language services, with a focus on managing competitive pricing pressures [82]